Tesla Fell 14% in One Day. Five Years of Data Says That's Still Normal.

Tesla dropped about 14 percent in a single day, so Tom Preston asks a fair question: was that even normal? Using five years of Tesla price changes, he shows that one day and five day moves actually fit a bell curve pretty well, with the rare monster day living way out on the tail. Stretch the window to 30 days and the tails get fatter, the moves get wilder, and the neat curve breaks down. The lesson is simple: outliers are frequent enough to wreck an oversized short premium trade, so lean on defined risk, keep size small, and let consistency across many trades do the work. This is education, not a recommendation. 📊 tastylive: https://www.tastylive.com/ 📰 Get Tom's pre-market analysis every morning: https://www.tastylive.com/newsletters 📘 FREE Options Strategy Guide: https://tinyurl.com/bp9ms763 📱 Follow tastylive on X: https://x.com/tastyliveshow Chapters 00:00 Tesla's 14% drop, is it normal 00:22 Why stocks follow a bell curve 01:45 Testing five years of Tesla data 02:33 One and five day moves fit 04:31 Thirty days breaks the curve 06:16 What it means for your trades 08:22 Why defined risk and small size win #tastylive #optionstrading #normaldistribution #bellcurve #tesla #definedrisk #shortpremium #impliedvolatility #optionseducation #cherrybomb tastylive is a real financial network, producing hours of live programming every day. Follow along as our experts navigate the markets, provide actionable trading insights, and teach you how to trade. With over 120 original segments, and over 25 personalities, we'll help you take your trading to the next level, whether you are new to trading or a seasoned veteran. tastylive content is created, produced, and provided solely by tastylive, Inc. ("tastylive") and is for informational and educational purposes only. It is not, nor is it intended to be, trading or investment advice or a recommendation that any security, futures contract, digital asset, other product, transaction, or investment strategy is suitable for any person. Trading securities, futures products, and digital assets involve risk and may result in a loss greater than the original amount invested. Investment information provided may not be appropriate for all investors and is provided without respect to individual investor financial sophistication, financial situation, investing time horizon or risk tolerance. Options, futures, and futures options are not suitable for all investors. Prior to trading securities, options, futures, or futures options, please read all applicable risk disclosures, including, but not limited to, the Characteristics and Risks of Standardized Options Disclosure and the Futures and Exchange Traded Options Risk Disclosure Statement found at https://tastytrade.com/disclosures/. Past performance is not indicative of future results. Performance is not presented net of all commissions, fees, and expenses. Multi-leg option strategies incur higher transaction costs than single leg trades as they involve multiple commission charges. Examples provided are for illustrative, informational, and educational purposes only and are not intended to be reflective of results you can expect to achieve. Supporting documentation for any claims, including claims made on behalf of options programs), comparisons, statistics, or other technical data, if applicable, will be supplied upon request. tastylive, through its content, financial programming or otherwise, does not provide investment or financial advice or make investment recommendations. tastylive is not a licensed financial adviser, registered investment adviser, or a registered broker-dealer.